Mr. Chairman, the Government of the Northwest Territories have made a significant investment in moving the Power Corporation from a federal Crown to a territorial Crown, and we have to do everything we can to make sure that investment not be deteriorated because of a lack of our efforts to make sure that investment retains its value and has an ability to grow. It is the intention of the Power Corporation to make sure that happens and that we take every step so that we don't neglect that responsibility. We realize we are at the throes of some great development that could very much enhance the economic well-being of many NWT residents, and we intend to take full advantage of that. Thank you.

Thank you, Mr. Chairman. Mr. Chairman, on an information item on page 16-13, I see there is revenue versus expenses. There is a projection of $9 million of income to the corporation. I think that Mr. Courneya indicated that, in some communities, there may be some rate increases; in other communities, there may be some decreases. Given that there is a $9 million surplus in the system, I would rather not see any increases in rates, but, perhaps, if there are decreases, then I would understand that. Thank you, Mr. Chairman.

In the rate review, I know we have had many discussions about the rates as they were set some time ago, and we don't really know why those rates were set. In the review, and if these things should change, the subsidy is still in place.

What I would like to say is that the corporation is a corporation that has to run with certain guidelines. They are allowed a certain rate of return. But, when you see the $9 million, this amount is used for reinvestment or in building other plants, and if you don't have that bottom line, we don't build any new plants.

The Power Corporation is committed to trying not to raise the rates, but I can't assure him that that's necessarily possible all the time. But I think in the rate structure review, some places may go down while other places go up, but the subsidy will still prevail on those particular realignments, and the changes that are there would not change the net outcome of the corporation's bottom line. Thank you.

Thank you, Mr. Chairman. Again, on the information item budget of the corporation. It seems to me the corporation is very healthy. In 1993-94, there was a return, as the Premier puts it, of $9 million. The 1994-95 proposed budget is expecting another $9 million in net income. It seems to be very healthy, and I hope that the small communities in the eastern Arctic or even in the western Arctic, will not suffer as a result of the review. Thank you. That is it.

Mr. Chairman, that is not the intent. It was just something, an item, an issue that we committed to reviewing because there were a lot of questions on why and how rates were set and established at such a rate as they were in the individual communities, because, for every community, we have a different rate. So we committed to do that.

In some areas, when you look at $9 million, it seems like a lot, but most of the power plants that are built in communities are in the range of $5 million. Mind you, the plants that are put in the community last many, many years. I would like to get very excited about the $9 million, but when we look at the cost of even replacing an engine or refurbishing an engine, $9 million is not a lot of money.

As well, the Power Corporation is also asked to pay a dividend out of that net income, and I think the last dividend we have been requested to pay is over $3 million. I think $3.5 million, somewhere around there. So these are areas, these are chunks of money that come out very quickly, so I think that I would like to be excited but it gets expended very quickly. Thank you.

Agreed.

---Agreed

Mr. Chairman, I just want to, at this time, thank Leon Courneya, who is no relative of mine, but his last name sounds the same.

---Laughter

I would like to say to the Members of the Legislative Assembly, that I appreciate a lot of the comments saying that we are doing a good job. We also recognize there is a way to go, but I want to make this statement that, getting to where we are has not come without a great deal of effort by the staff, by the chairman of the board and by the board members. They have put a great deal of time and attention to how we are to provide power generation to residents of the Northwest Territories in the most reasonable way we can. It hasn't come without a great deal of effort. I think the staff should be complimented on the work that they are doing and on the effort they have taken working with the aboriginal groups in making sure they get an equitable share and an equitable investment in what we are trying to accomplish. Thank you.

Thank you, Mr. Chairman. According to the agreement that we have with the committee, we should proceed with Bill 9.

Thank you, Mr. Chairman. I do have a few opening remarks with respect to this bill. May I proceed?

Yes, Mr. Todd. Proceed with your opening remarks.

Introductory Remarks

Mr. Chairman, Bill 9 is a minor amendment to change the present requirement under the Motor Vehicles Act from two licence plates on a vehicle to just one. As I understand it, the automotive industry has been lobbying the North American jurisdictions to move to the single plate system because newer, more fuel efficient aerodynamic body designs leave less and less room for a licence plate on the front.

---Laughter

I am sure they are talking about the car. At the same time, the Department of Transportation saw an opportunity to trim its licensing costs. The motor vehicles division began issuing single plates last year. In this amendment, we want to bring the law up to date with our current practices. I can tell the Members of the committee that the conversion to a single plate system has gone smoothly and we have not identified any problem areas that call for any more extensive amendments to the act. I hope the committee approves the new licensing system and agrees to the proposed amendments. Thank you, Mr. Chairman.

Thank you, Mr. Todd. The chairman of the standing committee which reviewed the bill, would you like to make the committee's comments on the bill? Mr. Gargan.

Standing Committee On Legislation Comments

Thank you, Mr. Chairman. The Standing Committee on Legislation has had the opportunity to review Bill 9, An Act to Amend the Motor Vehicles Act. This bill amends the Motor Vehicles Act to allow for the use of a single licence plate. Enforcement officers in the Northwest Territories were consulted regarding possible enforcement difficulties that may arise from the issuance of a single licence plate. No problems are anticipated. Therefore, the committee agrees, with the amendment, to allow for the issuance of a single licence plate and sticker.

However, Mr. Chairman, the amendments to change the terminologies to single licence plates provided the committee with the opportunity to review section 48(2) of the current legislation. The clause states that a person must keep the licence plate that is attached to the motor vehicle free of dirt and obstacles. Some Members of the committee held the view that, given the extreme condition of highways in the Northwest Territories, this legislation was too rigid and could cause undue hardship to vehicle owners. It would require vehicle owners to continuously keep their licence plate free of dirt, snow or other obstacles in the north where extreme conditions on highways prevail. Members also felt that the legislation left vehicle operators at the mercy of possible overzealous enforcement officers. To address this issue, the committee proposed an amendment to clause 24 of Bill 9 to insert the word "reasonable" in front of the words "free of dirt". The committee felt that this amendment would allow for the enforcement flexibility. The department suggested that deleting the words "free of dirt and obstruction" and substituting "is legible" would be more in line with the proposed purpose of section 48(2) of the current legislation.

Lengthy debate occurred over the proposed amendment, in my absence, to clause 24 of the bill. It was decided that the clause, as originally stated in the bill, would prevail as a satisfactory compromise between the committee and the Minister, who could not be reached. Thank you, Mr. Chairman.

Thank you, Mr. Gargan. Do you wish to bring in witnesses, Mr. Minister, for the review of Bill 9?